Chapter 9

Compare data from two time periods
Descriptive statistics
My Law
Minitab software
Prepared by:
Mark J. Nigrini
Copyright © 2012 by Mark J. Nigrini. All rights reserved.
Comparisons to detect changes
Bolton and Hand, actual data compared
to a set of expected values
Golden+, discuss comparison of details
We proactively set out to evaluate the
risk of fraud or errors
Parallel scan compares two sets of data
Tests to compare the detail in current and prior
period data
Descriptive statistics looked at an overview,
central tendency, variability, and shape
Histogram also looked at shape of distribution
Digits test used My Law concept
Fraudulent data showed some differences but
not wildly different to prior period data
Can be used for continuous monitoring

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